The ongoing gas crisis in Bangladesh has plunged the industrial sector into a state of disaster, with production levels plummeting across several key industries. As the gas supply fails to meet the soaring demand, industries, particularly in the ceramics, steel, and textile sectors, have seen their output nearly halved. Entrepreneurs and industry leaders are sounding the alarm, warning that the crisis is severely hampering exports, curbing investment, and stalling job creation. The survival of the industrial sector, they argue, is crucial to the broader economic health of the nation.
Hundreds of factories have been forced to shut their doors in recent months due to the ongoing gas shortage. As a result, export earnings have taken a significant hit, and investment activities have come to a halt. The failure to address this crisis could lead to a devastating slowdown in economic growth, with potential knock-on effects on domestic production and the export sector. Entrepreneurs fear that the worsening gas situation will deepen the ongoing dollar crisis, further straining the country’s foreign exchange reserves.
The impact of the gas crisis is felt across multiple industrial hubs. In areas such as Gazipur, Narayanganj, Narsingdi, and Savar, factories are struggling to maintain production due to insufficient gas supply and low pressure. In these regions, production has decreased by as much as 50%, with some areas, including Savar and Dhamrai, experiencing a staggering 75% reduction in output. Even industries with their own captive power generation systems are facing major setbacks, as the gas supply remains inadequate.
The Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) has highlighted the extreme impact of the gas shortage on the ceramics sector. According to Moinul Islam, Vice Chairman of Munnu Ceramics Industries, many ceramic factories in the affected regions have closed, while others are operating at a fraction of their capacity. The shortage of domestic gas, coupled with the government’s reluctance to increase LNG imports, has left the industry grappling with sky-high operational costs. In some cases, factories are resorting to costly alternatives like liquefied petroleum gas (LPG) and coal, further exacerbating their financial strain.
According to officials at the Titus Gas Transmission and Distribution Company, the demand for gas in their distribution area is currently 2,400 million cubic feet per day, while only 1,550 to 1,600 million cubic feet can be supplied. This severe shortfall has led to chronic disruptions in gas supply, causing industrial shutdowns and production delays. The gas deficit has also been a point of discussion at government meetings, but a concrete solution remains elusive.
Small-scale industries, especially those in rural electrification areas, are facing the brunt of the crisis. These factories, which rely on diesel generators in the absence of sufficient gas, are being hit by rising fuel costs. Some 40% of small industries are on the verge of collapse due to the prohibitive costs of maintaining production. As a result, many rural industries are scaling back or shutting down altogether.
The gas crisis is also taking a toll on raw material imports for industrial production. Recent reports indicate that imports of industrial raw materials have decreased by nearly 10%, while the opening of letters of credit (LC) for industrial machinery has dropped by 41%. Energy expert Dr. Ijaz Hossain, during a recent seminar organized by the Bangladesh Chamber of Industries (BCI), warned that continued power and gas shortages could lead to a 25-35% decline in production in critical sectors like garments and steel.
However, the industry leaders are calling for urgent measures to address the shortfall and stabilize the supply of gas and electricity to industrial areas. Without prompt action, the future of the industrial sector-and by extension, the economy-remains uncertain. Failure to resolve this issue could lead to widespread factory closures, loss of export revenue, and a sharp decline in industrial growth.
